NRIs Returning to India

With a majority of the nationalized and private sector banks going in for cuts in their lending rate on home loans and others loans, that too before the RBI’s mid-term review of monetary policy this month-end, it is expected that the urban co-operative banks in the state might follow suite. With the recent rate cuts on home lending rates and vehicle loans by banks like ICICI Bank, IDBI, State Bank of India (SBI) and Bank of Baroda (BOB), the urban co-operative banks are feeling the heat of competition from private and nationalized banks.

The lending rates in home loans for the co-operative banks in Gujarat generally range between 9 per cent and 13 per cent. It is expected that the co-operative banks might go for lending rate cuts up to 1 per cent, but it depends on the outcome of the mid-term review of monetary policy.